When laypersons overthink economics

Do you still remember the “Teuro” (a pun from the German word for expensive, teuer, and euro)? Well, my family sure does. In the beginning of the 2000s there was a little restaurant we loved to go occasionally. But then the conversion from German mark to euro came in 2002. Continue reading When laypersons overthink economics

Welcome to the Eurozone, Lithuania!

With the beginning of 2015 Lithuania, as the last of the three Baltic states, will adopt the euro. A first attempt to join the single currency in 2007 failed because the inflation rate was above Maastricht requirements. Seven years later, Lithuania is considered to be ready to be a part of the eurozone. But what are the prospects of the small country of only 3 million inhabitants in a currency area which, according to theory, is far from being optimal? Continue reading Welcome to the Eurozone, Lithuania!